Inflows
in sentence
636 examples of Inflows in a sentence
The perceived threat of mass
inflows
of migrants and refugees from poor countries with very different cultural traditions aggravates identity cleavages that far-right politicians are exceptionally well placed to exploit.
Keeping interest rates low discouraged capital
inflows
and encouraged asset-price inflation.
Likewise, the “surge” charge will automatically penalize speculative, herd-like capital
inflows
or outflows, without increasing bureaucrats’ discretionary power or introducing inflexible capital controls.
In 2006, Brazil invested $28.2 billion abroad, compared to
inflows
of $18.8 billion.
Like the financially integrated economies of Central and Eastern Europe, the commodity-rich countries have had to manage the complications of rapid
inflows
of foreign currency.
But these capital
inflows
also seem to discourage institutional development.
The fundamental question is whether full convertibility will encourage higher net
inflows
or outflows of capital.
Nor is full convertibility the key to attracting higher
inflows
of foreign direct investment (FDI).
China attracted FDI
inflows
of US$52.7 billion in 2002--the largest in the world.
India needs to attract higher FDI
inflows
to help soak up the economy's excess capacity.
This underscores the importance for India's financial stability of successful management of the capital account (monitoring
inflows
and outflows) following any move toward full convertibility.
As if on cue, that facade began to crumble, revealing an inconvenient truth: factors like high commodity prices and massive capital
inflows
had been concealing serious economic weaknesses, while legitimizing a culture of garish inequality and rampant corruption.
The ensuing currency battles are being fought on several fronts: foreign-exchange intervention, quantitative easing, and capital controls on
inflows.
After the 2008 financial crisis – a crisis that unambiguously originated in the US – the safe-haven effect caused the dollar to strengthen as capital
inflows
rose.
This facilitated massive capital
inflows
and unsustainable borrowing in the peripheral countries – most notably Greece, but also Portugal, Spain, and Italy – shrouding, and thereby accelerating, their increasing loss of competitiveness.
Indeed, there is a striking parallel between the problems caused by aid
inflows
and the “natural resource curse” (or “Dutch disease” as it is termed in Western countries), whereby
inflows
into one economic sector – typically oil or minerals – drive up economy-wide prices (including the exchange rate), rendering other sectors uncompetitive.
Even more importantly, policies can discourage foreign-borrowing-led consumption booms by taxing capital
inflows
(Chilean-style) or increasing financial intermediaries’ liquidity requirements.
For starters, the post-1992 reforms coincided with a surge of globalization, which provided China with massive capital
inflows
(about $1 trillion in foreign direct investment since 1992), a slew of new technologies, and virtually unimpeded access to Western consumer markets.
Real exchange rates may also appreciate because of increases in capital inflows, which reflect foreign investors’ enthusiasm for the prospects of the country in question.
For example, from 2003 to 2011, Turkey’s
inflows
increased by almost 8% of GDP, which partly explains the 70% increase in prices measured in dollars.
In general, terms-of-trade improvements and capital
inflows
do not continue permanently: they either stabilize or eventually reverse direction.
The same can be said of capital
inflows
and the upward pressure that they place on the real exchange rate.
For most emerging-market countries, however, nominal GDP growth in the 2003-2011 period was caused by terms-of-trade improvements, capital inflows, and real appreciation.
The increase in FDI inflows, access to sovereign debt, and sharp expansion of migrant remittances have all contributed to a shift in the revenue base away from commodities.
With heavy social spending go heavy taxes, particularly on labor, which distorts economies, reduces capital inflows, and raises unemployment rates, partly because work shifts to the untaxed grey economy.
But why would this be different from the pre-2008 capital
inflows
that fueled debt-financed growth?
But arguably the most important political development since the last budget negotiations in 2014 – more important than refugee
inflows
or Brexit – has been the emergence of illiberal, right-wing populist governments in Hungary and Poland.
Large
inflows
of capital from countries with low interest rates can easily push up exchange rates, putting the tradable part of the economy under pressure.
Moreover, capital
inflows
increased significantly, owing to real investment opportunities in the high-growth economy and the expectation of renminbi revaluation.
One area of concern is the health and stability of growth in emerging markets as they attempt to benefit from capital inflows; satisfy North Atlantic demands for open financial markets; and manage the resulting instability created by speculative “hot money,” the carry trade, irrational exuberance, and overshooting.
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